WASHINGTON, DC – Days after the GOP leadership released their deficit-reduction plan to avert the fiscal cliff, they still have yet to name what tax deductions they would reduce or eliminate. Doing so would reach deep into the middle-class as the table below shows, potentially affecting millions of people who depend on these tax savings. It would be politically unpopular and highlights the fact that their plan is more political rhetoric than sound policy.
Statement by Frank Clemente, Campaign Manager of Americans for Tax Fairness:
“Mr. Speaker, where’s the beef? Where are the specifics? With only days before our nation goes over the fiscal cliff, you continue to play cat and mouse with the facts and dodge your responsibility to lead. If you believe our nation’s budget deficit can be fixed by closing tax deductions you owe the American people a detailed plan outlining the deductions you would reduce or eliminate. Otherwise your plan is nothing more than political rhetoric and another tool to protect tax cuts for the wealthy at the expense of the middle class. We need to increase tax rates on the wealthy now to lock in $1 trillion in new revenue. Debate later which deductions to close to achieve at least the full $1.6 trillion in new revenue proposed by President Obama.”
Go here for an explanation of why it is preferable to raise tax rates on the wealthy rather than to limit tax deductions.